Tuesday, April 20, 2010

The Mandrake Mechanism

"I’m not getting into whether the Federal Reserve, fiat money, the gold standard, etc. are good or bad ideas."

The entire debate between us was generated by my initial assertion that the basic problem of the Federal Reserve system has resulted in Money = Debt. That our financial system exists solely to trap the average person into debt slavery...as I called it, 21st century Serfdom.

PMAFT also stated that "However, false facts and claims of secret plots by bankers aren’t good arguments. You can argue against the Federal Reserve without pulling a conspiracy out of your ass."

I didn't "pull it out of my ass," I pulled it from having done a lot of reading based on historical accounts behind the writing, lobbying and eventual passing of the Federal Reserve Act in 1913. While debating with PMAFT has caused me to do a fair amount of googling and reading in the past two days, I've been trying to find online sources of The Creature From Jekyll Island for free.

This chapter clearly explains the point I was trying to get across as to how the Federal Reserve System was designed to put all Americans into debt slavery.

First of all, what is the Mandrake Mechanism?

In the 1940s, there was a comic strip character called Mandrake the Magician. His specialty was creating things out of nothing and, when appropriate, to make them disappear back into that same void. It is fitting, therefore, that the process to be described in this section should be named in his honor.

Sounds like an apropos metaphor to me.

The first fact that needs to be considered is that our money today has no gold or silver behind it whatsoever. The fraction is not 54% nor 15%. It is 0%. It has traveled the path of all previous fractional money in history and already has degenerated into pure fiat money. The fact that most of it is in the form of checkbook balances rather than paper currency is a mere technicality; and the fact that bankers speak about "reserve ratios" is eyewash. The so-called reserves to which they refer are, in fact, Treasury bonds and other certificates of debt.

Our money is "pure fiat" through and through.

The second fact that needs to be clearly understood is that, in spite of the technical jargon and seemingly complicated procedures, the actual mechanism by which the Federal Reserve creates money is quite simple. They do it exactly the same way the goldsmiths of old did except, of course, the goldsmiths were limited by the need to hold some precious metals in reserve, whereas the Fed has no such restriction.

The Federal Reserve is candid.

The Federal Reserve itself is amazingly frank about this process.

A booklet published by the Federal Reserve Bank of New York tells us:

"Currency cannot be redeemed, or exchanged, for Treasury gold or any other asset used as backing. The question of just what assets 'back' Federal Reserve notes has little but bookkeeping significance."

Elsewhere in the same publication we are told:

"Banks are creating money based on a borrower's promise to pay (the IOU) . . . Banks create money by 'monetizing' the private debts of businesses and individuals."

In a booklet entitled Modern Money Mechanics, the Federal Reserve Bank of Chicago says:

In the United States neither paper currency nor deposits have value as commodities. Intrinsically, a dollar bill is just a piece of paper. Deposits are merely book entries. Coins do have some intrinsic value as metal, but generally far less than their face amount.

What, then, makes these instruments -- checks, paper money, and coins -- acceptable at face value in payment of all debts and for other monetary uses? Mainly, it is the confidence people have that they will be able to exchange such money for other financial assets and real goods and services whenever they choose to do so. This partly is a matter of law; currency has been designated "legal tender" by the government -- that is, it must be accepted.

In the fine print of a footnote in a bulletin of the Federal Reserve Bank of St. Louis, we find this surprisingly candid explanation:

Modern monetary systems have a fiat base -- literally money by decree -- with depository institutions, acting as fiduciaries, creating obligations against themselves with the fiat base acting in part as reserves. The decree appears on the currency notes: "This note is legal tender for all debts, public and private."

While no individual could refuse to accept such money for debt repayment, exchange contracts could easily be composed to thwart its use in everyday commerce. However, a forceful explanation as to why money is accepted is that the federal government requires it as payment for tax liabilities. Anticipation of the need to clear this debt creates a demand for the pure fiat dollars.

The Federal Government requires it as payment for tax liabilities...

aka - Money = Debt or nothing more than the promise of your future labor.

It is difficult for Americans to come to grips with the fact that their total money-supply is backed by nothing but debt, and it is even more mind boggling to visualize that, if everyone paid back all that was borrowed, there would be no money left in existence.

That's right, there would not be one penny in circulation -- all coins and all paper currency would be returned to bank vaults -- and there would be not one dollar in any one's checking account. In short, all money would disappear.

Marriner Eccles was the Governor of the Federal Reserve System in 1941. On September 30 of that year, Eccles was asked to give testimony before the House Committee on Banking and Currency. The purpose of the hearing was to obtain information regarding the role of the Federal Reserve in creating conditions that led to the depression of the 1930s.

Congressman Wright Patman, who was Chairman of that committee, asked how the Fed got the money to purchase two billion dollars worth of government bonds in 1933.

This is the exchange that followed.

Eccles: We created it.Patman: Out of what?Eccles: Out of the right to issue credit money.Patman: And there is nothing behind it, is there, except our government's credit?Eccles: That is what our money system is. If there were no debts in our money system, there wouldn't be any money.

This is precisely the very reason that was intended when this legislation was written and passed in 1913.

With the knowledge that money in America is based on debt, it should not come as a surprise to learn that the Federal Reserve System is not the least interested in seeing a reduction in debt in this country, regardless of public utterances to the contrary.

Here is the bottom line from the System's own publications. The Federal Reserve Bank of Philadelphia says:

"A large and growing number of analysts, on the other hand, now regard the national debt as something useful, if not an actual blessing . . . [They believe] the national debt need not be reduced at all."

The Federal Reserve Bank of Chicago adds:

"Debt -- public and private -- is here to stay. It plays an essential role in economic processes . . . What is required is not the abolition of debt, but its prudent use and intelligent management."

So what does this all mean when you consider the entire morality of the Federal Reserve system?

Consider the example given:

Centuries ago, usury was defined as any interest charged for a loan. Modern usage has redefined it as excessive interest. Certainly, any amount of interest charged for a pretended loan is excessive. The dictionary, therefore, needs a new definition.Usury: The charging of any interest on a loan of fiat money.

Let us, therefore, look at debt and interest in this light. Thomas Edison summed up the immorality of the system when he said:

People who will not turn a shovel of dirt on the project [Muscle Shoals] nor contribute a pound of materials will collect more money . . . than will the people who will supply all the materials and do all the work.

Is that an exaggeration? Let us consider the purchase of a $100,000 home in which $30,000 represents the cost of the land, architect's fee, sales commissions, building permits, and that sort of thing and $70,000 is the cost of labor and building materials. If the home buyer puts up $30,000 as a down payment, then $70,000 must be borrowed. If the loan is issued at 11% over a 30-year period, the amount of interest paid will be $167,806. That means the amount paid to those who loan the money is about 2 1/2 times greater than paid to those who provide all the labor and all the materials. It is true that this figure represents the time-value of that money over thirty years and easily could be justified on the basis that a lender deserves to be compensated for surrendering the use of his capital for half a lifetime. But that assumes the lender actually had something to surrender, that he had earned the capital, saved it, and then loaned it for construction of someone else's house. What are we to think, however, about a lender who did nothing to earn the money, had not saved it, and, in fact, simply created it out of thin air?

What is the time-value of nothing?

As we have already shown, every dollar that exists today, either in the form of currency, checkbook money, or even credit card money -- in other words, our entire money supply -- exists only because it was borrowed by someone; perhaps not you, but someone.

That means all the American dollars in the entire world are earning daily and compounding interest for the banks which created them. A portion of every business venture, every investment, every profit, every transaction which involves money -- and that even includes losses and the payment of taxes -- a portion of all that is earmarked as payment to a bank.

And what did the banks do to earn this perpetually flowing river of wealth? Did they lend out their own capital obtained through investment of stockholders? Did they lend out the hard-earned savings of their depositors? No, neither of these were their major source of income. They simply waved the magic wand called fiat money.

The power to profit from interest from fiat currency created by nothing more than a mouse-click? That is extraordinary power indeed.

What do you call it when a group of banksters get together to get this system passed off as the law of the land?

22 comments:

HL. Those who deny the conspircy are really not worth this much trouble. I have, on video, an australian federal magistrate refusing to answer the question as to whether he is sitting under his oath of office. I have an 'order' from that same magistrate saying that talk of 'inalienable rights' is an 'inanity'. He means your right to life, property and liberty.That a sitting magistrate can say those things knowing full well I am sending them to the Prime Minister tells you everything you need to know. The magistrates and judges are criminals and they know they are protected by the State. Ditto the bankers and medicos not to mention the media. Those calling this a 'theory' might like to call the 'blue sky' a theory as well. LOL!

This ProMale AntiFeminist is a high level official of the Illuminati-NWO. You can tell from his blog and his arrogance. As men we have a duty to our Lord to get married, procreate, and lead Christian families. This ProMale AntiFeminist hates the Lord and wants to trick men into not fulfilling our God given responsibilities to women. That vile individual's blog and that spearhead website he bankrolled are a satanic plot to turn men into large boys who fail to have children. His 'mens rights' are an affront to our godly responsibilities as men.

I think the idea (fact) that our money = debt is a disturbing and alarming piece of information.

I for one don't mind that we have a fiat currency. As long as we manage the level of currency out there so that there is a stable money supply it doesn't matter. There are big problems with the gold standard as well.

I do have a huge problem with the perpetual treadmill that is created by design when we have a debt based money system. If there are $100 in circulation, and somebody is owed $106, then you've got the perpetual treadmill - which is exactly what we've got.

Unfortunately we are so many sheep, and won't ever think it through and challenge the system. You know we won't do it.

That a sitting magistrate can say those things knowing full well I am sending them to the Prime Minister tells you everything you need to know.

I'm sure your Prime Minister will put it on youtube so we can all laugh at you.

This ProMale AntiFeminist is a high level official of the Illuminati-NWO. You can tell from his blog and his arrogance. As men we have a duty to our Lord to get married, procreate, and lead Christian families. This ProMale AntiFeminist hates the Lord and wants to trick men into not fulfilling our God given responsibilities to women. That vile individual's blog and that spearhead website he bankrolled are a satanic plot to turn men into large boys who fail to have children. His 'mens rights' are an affront to our godly responsibilities as men.

You forgot to call me a reptile alien.

I have to say I'm really insulted that you didn't accuse me of being in charge of the Illuminati. I have been demoted to "high level official".

Thomas,"As men we have a duty to our Lord to get married, procreate, and lead Christian families."The 'Lord' is an invention of the Illuminati and the bible was written by them. Christianity (and all religions) are merely mind control devices to get the sheeple to breed and work. They even called Jesus 'the good shepheard'. What does that make you? A sheep. I was christian from 16-44 before I came to realise this and deprogram myself from 'christianity'.

PMAF,"I'm sure your Prime Minister will put it on youtube so we can all laugh at you."My comments are serious so why would you say this. That the Australian PM/AG have been served lawful notices that they may be lawfully assassinated (along with members of the legal profession) if rule of law is not restablished in Australia with their support is no laughing matter. Indeed. I will be putting my video of my case onto youtube for viewing by selected people. It has already been distributed to key members of the free man movement to validate my claims.By the way. Gordon Brown and Angela Merkel take me seriously. I have alleged human rights violations against both and they responded denying the claim. I have now forwarded that claim to ban ki-moon. I pointed out I am well aware the UN is merely an Illuminati front One World Guvment organisation and promised to publish that fact widely along with my letter to him if he does not issue letters to Gordon Brown and Angela Merkey and all successors to cease and desist violating my human rights. If Ban Ki-Moon does not do this he too will be tried before a common law court because he will be living in the US when he commits the crime of breaking his oath as head of the UN. So...that's 4 'world leaders' who are getting the pointing end of the stick from me. What are you doing to stop the ongoing genocide? Sitting on your hands I expect. I'm pretty tired of men pretending to be all 'intelligent' and working for 'mens rights' who can't point to one return correspondence by any of these Illuminati puppets. You are not achieving anything.

PMAF,"Any college level economics textbook would explain this much better."All textbooks are written by the Illuminati to further the brainwashing and control grid. So yes, any college level textbook would tell you exactly what they want you to be-LIE-ve. Sooner or later you are going to 'wake up' and it's going to be a real shock to you I can see.To me you occur as a smart '5 year old' who has no idea what is really going on but is convinced he does and therefore can not get himself out of the mind control he is under. And unless you know you are under mind control you can't get out of it. Ignorance IS 'bliss'.. ;-)

What I've learned is that, from the creation of the Federal Reserve in 1913, the federal debt to the banksters was paid, by their order, in gold. By 1933, only 20 years later, all the gold was gone (Ft. Knox is empty), and FDR declared the US to be insolvent and bankrupt (which is also when FDR confiscated all the privately-owned gold that he could). Since then, the federal government has promised the wealth extracted from your lifetime of labor (in the form of taxes) as collateral to the banksters in payment of the federal debt. That's right...confiscating the wealth of the citizenry through the taxing of their lifetime of labor is what the government promised to the banksters. Your birth certificate was the means of ownership by which the fedgov press-ganged you into this servile state. I'm still reading about this, and trying to figure out both what to do about it and how to gather the nerve...

"The 'Lord' is an invention of the Illuminati and the bible was written by them. Christianity (and all religions) are merely mind control devices to get the sheeple to breed and work. They even called Jesus 'the good shepheard'. What does that make you? A sheep. I was christian from 16-44 before I came to realise this and deprogram myself from 'christianity'."

globalman100, you are doing what ProMale AntiFeminist and the rest of the Illuminati scum want. ProMale AntiFeminist is a master of psychological manipulation and you have been manipulated. He once admitted on his blog his ability to get multiple women to fornicate with him at once. The Illuminati created 'mens rights' to trick men into shirking their responsibilities as men to have and lead Christian families. This is how they are executing part of their depopulation scheme.

The most important thing men can do to stop the Illuminati is create Christian families and raise godly children that will create more Christian families.

globalman100, despite knowing the truth about the Illuminati you have been infected with their 'mens rights' virus. Knowing the truth has not stopped you from being the Illuminati's puppet.

Thomas,"globalman100, despite knowing the truth about the Illuminati you have been infected with their 'mens rights' virus."You have read nothing of what I have written then. In spearhead I have noted that men have all the rights they want if they only knew how to claim them and then defend them. I am teaching men how to claim their rights, either as gifts from their creator or self claimed, and then to defend them. If men did as I proposed they would defeat the Illuminati post haste. Alas, they like their slavery. As far as men being 'infected' with 'mens rights'. That's real funny coming from someone who is an Illuminati mind controlled slave calling himself 'christian'. Christianity is a hoax to keep people breeding and working. They are removing it because THEY say there are too many people on THEIR planet. As far as 'fornicating' goes. I was a faithful christian boyfriend, fiancee, husband for 23 years. Where did that get me? Nowhere good. Now I have sex with the most beautiful women I can convince to do me. And they are some pretty hot women let me tell you. Marriage sucks. No man should marry. No man should bother himself with children any more. Some of us are trying to save the lives of many men and many boys because we care. Most men couldn't give a shit about their fellow men or the boys in their society. It would seem to me you are in that group Thomas. What have you done of late to save the lives of your fellow men being abused by the Illuminati corrupted courts via vindictive wives? What have you done to stop the abuse of boys?

"What have you done of late to save the lives of your fellow men being abused by the Illuminati corrupted courts via vindictive wives? What have you done to stop the abuse of boys?"

What have I done, globalman100? I have done the most important thing I could ever do. I get young men to TAKE RESPONSIBILITY for their lives, their wives, and their children to create Christian families and raise godly children. All your prattle about 'rights' is Illuminati propaganda. Men don't need to worry about 'rights'. Too many of us abuse the rights we have. Men are failing when it comes to our responsibility to women, children, and society. Illuminati propaganda about 'rights' is one way they cause us to depopulate ourselves. The reason why the Illuminati are willing is because men like you globalman100 promote their satanic gospel. You should know better.

When you tell men, really overgrown boys, not to marry and not to have children you do the work of the Illuminati. I get that you failed as a man in your responsibilities as a Christian husband and father. It was through your failure to be a REAL CHRISTIAN MAN that the Illuminati made you their puppet.

The Illuminati will be defeated by REAL CHRISTIAN MEN doing their duty by getting married and raising godly children. After the Illuminati are gone we will deal with overgrown boys like you globalman100 who refused to see the truth right in front of them. A person who isn't aware of the Illuminati has an excuse. You don't so you better MAN UP soon or we will hold you responsible for failing to be a true Christian man.

That the Australian PM/AG have been served lawful notices that they may be lawfully assassinated (along with members of the legal profession) if rule of law is not restablished in Australia with their support is no laughing matter.

I doubt these guys will listen to you. Since you claim to be able to "lawfully assassinate" them, when are you going to do it? Do it and prove to us you are right. Provide us with this piece of irrefutable evidence of your beliefs.

If you don't personally "lawfully assassinate" these guys, then you're clearly full of crap. We're waiting.

Thomas,"Men are failing when it comes to our responsibility to women, children, and society."Bullshit. Men are not 'failing'. Very large numbers are being abused and being robbed of their children against their will with no fault on their part often at gun point. I am one of them. To hear a man talk of 'men failing' is insulting because it is so false. Especially a man who is brainwashed by the Illuminati Kool-Aid of christianity. It is WOMEN who are failing their children. It is WOMEN who are committing the crime of perjury in large numbers in order to give the Illuminati stooges in the state the pretense of abusing the man.

"I get that you failed as a man in your responsibilities as a Christian husband and father."You may 'get' this but you would be incorrect and it would indicate you have not read my intro post over at the spearhead. Men like you spreading lies about men like me are a part of the problem, not a part of the solution Thomas.

"so you better MAN UP"And you throw in a little wimminz shaming language to boot Thomas. You are pathetic. I shall continue to tell the young men that Christianity is a trap, a mind control device, that western women are total crap now and should be avoided at all costs, that dating young hot women for as long as you can is a great way to go, and that men like you will attempt to tell them otherwise based on lies and shaming language. When a man has to rely on lies and shaming language to try and persuade another man of a point of view he has sunk to the intellectual level of women and children and is rightlyfully dismissed as irrelevant to the process of defeating the Illuminati and educating young men on how the world really works. Well done Thomas. You are one of the fastest to reveal yourself so far.

PMAFT,"I doubt these guys will listen to you." Oh, they ARE listening, and they are responding in the only way they have available. They are threating me with their 'blue gun thugs'. Only trouble is, to do anything now will only expose them further. Too many people know who I am and too many people have copies of everything I have done. I have also taken out an 'insurance policy' so those who might wish me dead would be unwise to act on that. They have to rely on the willful ignorance of men, and in you, they'd be correct, wouldn't they.By the way. I asked you what you had done and you didn't answer. I gather that means you have done so little you are embarrassed to put it in this place. As far as 'lawful assassination' goes. I say 'may'. Alas this word has a double meaning in english. I meant 'allow to' or 'permisssion/agreement to'. My reading of the geneva conventions indicates that members of the law society in australia have waived their protected person status and have no coverage of right to life under the geneva conventions on warfare.As far as 'I am waiting'? You will always find something else you need to see before you are willing to act. That makes you irrelevant to actually defeating the Illuminati. I have already published most of my docs used to deny jurisdiction of the federal magistrates court and I am in the process of creating common law courts to try them. We probably have 6-12 months to run through this process before any formal declaration of warfare comes forth from fathers to the legal profession and guvments. It has taken me two years to get this far and so another year to get a result is quite fine. I originally thought it would take 5-10 years so I am years and years ahead of schedule so far. And men like you are some of the biggest problem children in this process. You simply will not educate yourself yet present yourself as knowledgable on these subjects. A real liability. Do you want to be an asset or a liability in the effort to defeat the Illuminati and free mankind for the first time in history?

Thomas,"I get young men to TAKE RESPONSIBILITY for their lives, their wives, and their children to create Christian families and raise godly children."You are full of shit Thomas. The current problem is that men have their children stolen from them in large numbers and 'take responsibility' merely means 'become a slave to the woman and the state' through the corrupted courts. Men are abused and then have to pay the bill for that abuse.

A man is not allowed to 'take responsibility' at the pointy end of a gun and threat of incarceration in many cases, mine included. You know this or you are pig-ingorant.

Given the currently corrupted Illuminati system, which you support by being chrisitan and encourage men to go into this shitty situation only to be abused by your friends in the Illuminati, the most responsible action by a man is to refuse to go into that system. By refusing to enter into that system men will rob it of it's energy and be free to set up their own alternate system should they choose. That system is common law and the man should only consider having a child AFTER we have proven that a common law contract placing 100% ownership of the child with the man will be supported by common law courts. We will do this be going into the courts and denying their jurisdiction and then holding common law courts to transfer ownership of children back to the father where the mother can be proven to have committed perjury. Where the mother used the state to abuse the man she will also be ordered to pay compensation on pain of being outlawed. Tens of millions of women committed perjury in common law countries to abuse men. This is a crime. These women will be pubnished. Men are well advisd to refuse to have children until such time as the rule of law is re-established in the land in which they live. My proposal will work. Yours will not. It is as simple as that.

Just so you know. The catholic church is nothing more than the whore of babylon mystery religions repackaged and at least one catholic priest has come out saying this on video at the risk of his own life. The pope has been photographed making the standard Illuminati hand signals, both hands at once no less. He also used the Illuminati/masonic handshake when greeting Tony Blair and Blair used the submissive side of the handshake acknowledging the Pope as his master. All christians are the willing or unwitting dupes of the Illuminati. It doesn't really matter which.

globalman100, why don't you understand this? The Illumanti has a depopulation agenda. Anything that gets men to not have godly children raised by parents in a Christian marriage supports this goal. You may as well be working for the Illumnati with how you convince men to shirk their godly duties.

Yes, I'm using what you call shaming language. That's because YOU DESERVE TO BE SHAMED. Your behavior is childish. If your dad knew how you were acting I am certain he would give you a good beating with his belt. You have failed to be a REAL CHRISTIAN MAN.

Women aren't 'stealing' children from men. The only reason that women would want to get away from men is that the men are failing their duties to lead a CHRISTIAN FAMILY. You globalman100 clearly failed in your duties as a Christian man.

Here is what you need to do to become a REAL CHRISTIAN MAN:

1. Stop masturbating to the porn2. Put down the xbox controller and throw out all of your video games3. Stop blaming women for your failure to be a man4. Stop whining about 'rights' and recognize the problem is your failure to live up to the responsibilities the Lord has demanded of you5. MAN UP

If you do these things then you will never have to worry about women 'stealing' your kids. Women are only responding to the failure of men to lead REAL CHRISTIAN FAMILIES. Only by being a REAL CHRISTIAN MAN leading a REAL CHRISTIAN FAMILY raising godly children can you do anything to defeat the Illuminati.

globalman100, your excrement about Christianity being an Illuminati tool is Illuminati propaganda. The Christian religion is the ultimate weapon against the Illuminati since it forces men to become REAL MEN and create FAMILIES that sustain the world. This is how the Illuminati will be defeated not by your whining about your 'rights' to ignore your godly responsibilities to women and your family.

globalman100, you know ProMale AntiFeminist is laughing at you, right? You attack him yet he knows you do his bidding. He wants the depopulation agenda to move forward and you can't fight him properly. Everything you do only supports his satanic desires.

A man can not fight the Illuminati without becoming a REAL CHRISTIAN MAN and creating and leading a REAL CHRISTIAN FAMILY that raises GODLY CHILDREN.

Thomas,"globalman100, why don't you understand this? The Illumanti has a depopulation agenda. Anything that gets men to not have godly children raised by parents in a Christian marriage supports this goal."Christianity is THEIR tool to get more people born to christians. Or have you never heard of the ban on contraception for catholics? Now they are running a depopulation agenda. And of course I know that telling men to not marry and have babies is in line with that agenda. However, just because two things are in line does not make them related. That's about all I need to say Thomas. You won't be listening to anything else. For me, you are a waste of time. You are also selling young men down a path that has proven to kill a lot of them and severely abuse a lot more. I have no respect and no regard for men like you who are aware of the agendas at play and will not tell the truth to young men. By the way. I used to be of very similar opinion to you and I assisted many christian couples in their marriages. Sad to say.

"However, just because two things are in line does not make them related."

globalman100 that doesn't matter. You might as well be on the Illuminati's payroll. ProMale AntiFeminist loves the fact that you work for his agenda.

Leading a REAL CHRISTIAN FAMILY does not kill or abuse men. Bad things can happen to men who fail show REAL CHRISTIAN LEADERSHIP in their families but men need to MAN UP and TAKE RESPONSIBILITY for their failures. While the Illuminati is real and must be fought it is no excuse for your personal failures to be a REAL CHRISTIAN MAN, globalman100.

". That our financial system exists solely to trap the average person into debt slavery...as I called it, 21st century Serfdom."

Yes, thats it in a nutshell.

In the seventies, the average factory or construction employee made about 50-75% of the cost of a starter home per year. He'd make 12K a year, and a starter home cost about 18K (what our second house cost when I was a tot). Now people make 35K per year, but a first home cost 100K-to-120K, about 3-to-4 times what they make.

College tuition, more expensive cars, super high phone and cable bills (Ma Bell and the five channels you used to get cost next to nothing), higher insurance, and all the other tinny little costs of modern lives conspire to make you have to borrow.